With the Tax Credit Deadline Looming - A Game of Chicken is Erupting

We put an offer in for a buyer yesterday; the seller has asked that we reduce the inspection period from 10 days to 7 days.  Why?  If the deal falls through, he wants time to sell his house again before April 30th.  Hmmm...... Guess you can't blame a seller for hedging his bets.

We seem to have encountered a strange twist now that we are late in April, sellers are taking advantage of the tax credit deadline and holding "firm" on price and home inspection issues.  They seem to think that buyers will pay a little more these days and overlook obvious material defects in a home because they are getting desperate to get under contract by April 30th. 

We get that sellers have been beat up by the market downturn of the last two years, and they now can negotiate from some position of power.  But it seems to us that some sellers are flexing their muscles a little too hard to the point of foolishness.

Would you pay $10,000 more than the comps support to get $8,000 or $6,500 back from the government? 

Would you accept a home that needs $10,000 in repairs to get $8,000 or $6,500 back from the government?

Do sellers understand there are thousands of homes on the market?

Whose tax credit is it anyway?

The old adage, "A bird in hand is worth two in the bush" seems like worthy advice to sellers these days. 

Sellers seem to think with certainty that a better buyer will come along before the end of the month.  That is only 12 days away!  We believe that come May, when the tax credit is no longer available, most if not all of the sellers currently playing "chicken" with the market will end up on the losing end.  Buyers who have not purchased yet may also do better in May. 

Time will tell!

~Lisa

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

 

With the Tax Credit Deadline Looming - A Game of Chicken is Erupting, Copyright © 2010, The Scott Loper Team, All rights reserved.

The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213